Indian Startup Funding Analysis

The main aim of this analysis, is to answer 5 of the most important questions that come to a young enterpreneurs mind when he decides to start his own company; Who is the most important investor in the country? How does the funding ecosystem change with time? Who is the biggest investor in the country? Do cities play a major role in funding? *Which industries are favored by investors for funding?

Downloading the Dataset

This dataset has been downloaded from kaggle. This dataset contains the funding information of the Indian startups from January 2015 to January 2020. It includes columns with the date funded, the city the startup is based out of, the names of the funders, and the amount invested (in USD). First step is to install the opendatasets module, which helps in downloading and storing the dataset to the jupyter notebook. From there we go to the directory in which the downloaded file has been stored.

Let's begin by downloading the data, and listing the files within the dataset.

The dataset has been downloaded and extracted.

Data Preparation and Cleaning

After we download the dataset and go to the directory that it is stored in, we use the read_csv function from the pandas library to convert it to a dataframe. Now we have to clean the corrupt data, change column name, handle missing data, parsing dates, change data types of the columns and various other operations.

Exploratory Analysis and Visualization

Now we come to the analysis part of the project. Here we are going to be plotting various graphs to see how thr trends in the trends in the startup funding ecosystem are changing.

Let's begin by importingmatplotlib.pyplot and seaborn.

This graph explains how the number of startups in the country have been increasing since 2015.

This graph with the years on the x axis and the number of startups on the y axis helps us infer how the number of startups in the country have been increasing with time. Looking at this graph should make you brave enough to start your dream company if you are an aspiring enterpreneur but dont have the courage to do it.

This bar graph tells us the number of startups that have emerged every year for the last 5 years, with 2016 being the most and 2020 being the least. Point to note here is that the number of startups in 2020 is the least because there are records only for the first month.

This bar graph explains how the investors want to invest their money. Pre series A is typically the time when the founders of the company are first getting their operations off the ground. The graph makes it clear that the investors want to invest in companies at the early stages of operation.

This graph gives the number of startups in the country city wise. Bangalore has the highest number of startups in the country followed by Mumbai. The graph clearly tells us why, Bangalore is called the Silicon Valley State of India.

This pie chart gives the percentage of startups in every sector.

Asking and Answering Questions

Here we are going to ask 5 of the most important question with regard to funding for startups and project our findings from the analysis.

1)Who is the most important investor in the country? 2)How does the funding ecosystem change with time? 3)Who is the biggest investor in the country? 4)Do cities play a major role in funding? 5)Which industries are favored by investors for funding?

1)Who is the most important investor in the country?

Ratan Tata clearly is the most important investor in the indian startup funding ecosystem. As successful as he his, he has boosted many startups with his investments.

2)How does the funding ecosystem change with time?

The amount funded every year has been increasing and decreasing every alternate year, with 202 being the lowest because we have records only for the first month.

3)Who is the biggest investor in the country?

The graph makes it clear that SoftBank has been the biggest investor in India.

4)Do cities play a major role in funding?

Bangalore being called the Silicon Valley State on India has got the mosst funding in the country, which also explains why it has the highest number of startups as well.

5)Which industries are favored by investors for funding?

The E-commerce industry has got the highest funding amongst all the sectors. E-commerce is also one of the popular industries for startups.

References

Dataset - https://www.kaggle.com/sudalairajkumar/indian-startup-funding

https://medium.datadriveninvestor.com/exploratory-data-analysis-eda-understanding-the-gender-divide-in-data-science-roles-9faa5da44f5b